Anna wants to buy a car in two years and wants to have $10,000 for the purchase. how much will anna need to deposit today in an account that earns 5% interest per year, compounded monthly?
anna will need to deposit $.

Anna will need to deposit

Step-by-step explanation:

we know that    

The compound interest formula is equal to  

where  

A is the Final Investment Value  

P is the Principal amount of money to be invested  

r is the rate of interest  in decimal

t is Number of Time Periods  

n is the number of times interest is compounded per year

in this problem we have  

substitute in the formula above  and solve for P